CMBS Default Risk Connected to Poor Energy Efficiency

A report by UC Berkeley and Lawrence Berkeley National Lab found a tight correlation between energy efficiency for CRE buildings and the likelihood of defaults. As unorthodox as that may sound, it is supported with some rather convincing data.

Using commercial mortgage data trends from Trepp, LLC, and energy use statistics from benchmarking disclosures, researchers evaluated the impact of actual energy use and prices in six metros on default performance of CMBS loans between 2000 and 2012. What they found was poor building energy efficiency actually may be a significant predictor for commercial loan defaults.

The data collected is expected to help lenders collect “baseball-like statistics that evaluate and quantify the risk of mortgage default, based on a building’s energy metrics,” say the study’s authors, Dr. Paul Mathew of the Lawrence Berkeley National Laboratory and Dr. Nancy Wallace of UC Berkeley.

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About Dennis Kaiser

Dennis Kaiser is Vice President of Public Relations and Communications for Connect Creative. Dennis is a communications leader with more than 40 years of experience including as a journalist and in corporate and agency marketing communications roles. He is responsible for Connect Creative’s agency client services and is involved in a range of initiatives ranging from public relations and content strategy, communications and message development, copywriting, media relations, social media and content marketing services. Prior to joining Connect Media in 2015, his most recent corporate communications roles involved leading a regional public relations effort across Southern California for CBRE, playing a key marketing role on JLL’s national retail team, and directing the global public relations effort at ValleyCrest (BrightView), the nation’s largest commercial landscape services company. He has worked on marketing communications assignments for such CRE companies as Blackstone/Equity Office, Carlyle, Caruso, Disney Resorts, GE Capital, Irvine Company, Hines, Howard Hughes Corp., Jeffries, Lennar, MGM, Marcus & Millichap, Prologis, Raleigh Studios, Simon, Starwood, Trammell Crow Company, Transamerica, UBS and Wynn Resorts. Dennis has also worked on communications and launch strategies for a number of consumer electronic, media and tech brands including SlingMedia, Channel Master, Deluxe Media Entertainment, BeIn Sports, EchoStar and Sprint. Dennis’s agency background included firms such as Off Madison Ave., Idea Hall and Macy + Associates. He has earned an outstanding reputation with organization leaders as a trusted advisor, strategic program implementer, consensus builder and exceptional collaborator. Dennis has developed and managed national communications programs for Fortune 500 companies to start-ups, both public and private. He’s successfully worked with journalists across the globe representing clients involved in major-breaking news stories, product launches, media tours, and company news announcements. Dennis has been involved in a host of charitable and community organizations including the American Cancer Society, Easter Seals, Boy Scouts, Chrysalis Foundation, Freedom For Life, HOLA, L.A.’s BEST, Reach Out and Read, Super Bowl Host Committee, and the Thunderbirds Charities.

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CMBS Default Risk Connected to Poor Energy Efficiency

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CMBS Default Risk Connected to Poor Energy Efficiency

Inside The Story

About Dennis Kaiser